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On August 2, 2016, the Treasury Department released proposed regulations under Section 2704 of the Internal Revenue Code. These proposed regulations would make significant changes to the manner in which minority interests in family-controlled entities are valued for estate, gift, and generation-skipping transfer tax purposes. If allowed to go into effect as written, these rules would impose a de facto 25 to 50 percent tax increase on each transfer, and severely hamper many of these businesses. Many ASA members have asked for resources to help communicate opposition to the proposed IRS Section 2704 regulations, particularly to their elected officials in Congress. In response to this, the American Society of Appraisers has developed two documents to help convey this message in a clear and concise manner:

There is a letter template that raises the most critical points against the proposed regulations, in a way that is readily accessible to members of Congress and their staffs. To access the letter template, click here. Feel free to augment any arguments with your own experience as it relates to valuing these kinds of interests and the businesses typically involved.

ASA has also produced a series of talking points to be used when speaking with members of Congress or their staffs; these talking points help to provide a clear message from the perspective of the valuation community. To access this document, click here.

Not sure who your members of Congress are? Click here and enter your ZIP code to find out. Once you know your elected officials, you can check their individual web sites to determine the best way to send your letter to the right point of contact, as well as how to schedule a meeting or phone call with their office.

If you plan on seeking a meeting, there are two key things to remember. First, make sure to tell whomever you speak with that you are a constituent from the member’s district or state. Second, you can ask to speak to either the member or their staffer who handles tax issues – you are most likely to be speaking with the staff member, not the elected official themselves. It’s likely the staffer will already have some understanding of the IRS proposal.

If you have questions regarding the documents or how best to reach out to your elected officials, please contact John D. Russell, JD, Senior Director of Government Relations and Chief Lobbyist for ASA at jrussel@appraisers.org or 703-733-2103.